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Vol. XC, No. 145 Ann Arbor, Michigan-Thursday, April 3, 1980 Ten Cents Twelve Pages

Pirime rate
hits new
high: 20
per cent
From AP and UPI
NEW YORK-The spiraling cost of
business borrowing reached
unprecedented heights yesterday as
many banks pushed their prime lending
rates to 2Q per cent.
Chemical Bank, the country's sixth-
largest, led the move to the record level
only one day after third-ranked Chase
Manhattan Bank boosted its rate to 19%
per cent.
THE PRIME, WHICH stood at 15 /
per cent in mid-February, has been
climbing sharply since the Federal
*Reserve Board imposed new credit
controls on March 14.
Detroitbank Corp. and National Bank
of Detroit, following the lead" of the
nation's major banks, also said
yesterday they are boosting their prime
interest rate from 19% per cent to 20.
Detroitbank Corp. raised its prime
rate effective immediately, while the
NBD increase was effective today.
"THE RISE IN the prime reflects the
cost of bank funding in the open
marketplace as well as strong seasonal
oan demand," said Thomas Johnson,
See CHEMICAL, Page 6

Carter implements
windfall profits tax

Daily Photo by DAVID HARRIS I

NORML SPOKESMAN Roger Winthrop advocates making possession of
marijuana a civil offense rather than a misdemeanor. He spoke last
night at the Michigan Union. See story, Page 5.

CONFLICTING REPOR TS FROM IRAN:

From AP and UPI
WASHINGTON - Just short of a year
after he sent it to Congress, President
Carter yesterday signed the $227.7
billion oil windfall profits tax, hailing it
as "a victory for every American
citizen."
The oil industry disagreed.
AT A CEREMONY in the East Room,
the president noted that when he
proposed the legislation a year ago,
many said it would never pass
"because of the powerful influences
that have been focused against it."
Also yesterday, Carter officially im-
plemented his plan to impose a 10-cent-
a-gallon tax on gasoline despite the fact
that some members of Congress are
seeking to derail the proposal.
Carter signed a- proclamation to
begin collecting an import fee of $4.62 a
barrel on crude oil. At the same time,
he imposed a complex set of regulations
designed to insure that the entire brunt
of the tax falls on gasoline.
CARTER MADE the import fee
retroactive to March 15 and ad-
ministration officials said the 10-cent
hike in gasoline prices would begin
showing up May 15 at the pumps.
The president said he wants the win-
dfall profits tax money to be used to
help poor people pay their fuel bills, to
improve transit systems, and to
develop new energy sources.
.However, Congress has said it wants
60 per cent of the revenue, or $137
billion, spent on reducing federal in-
come taxes.
BUT ADDITIONAL, specific
legislation will be needed to earmark
just how the money will be spent.
In his remarks, the president in-
dicated he was not opposed to reducing
income taxes or the federal debt.
American Petroleum Institute
President Charles DiBona said in a
statement, "Enactment of the windfall
profits tax now means we have lost an
opportunity presented by the
president's decontrol decision to in-
crease domestic production of crude oil
by 1.7 million barrels a day by the mid
to late 1980s."
"THE SHORTFALL, unfortunately,
will have to be made up with imports
from foreign producers," DiBona
predicted.
Carter said since he announced the
phased decontrol of domestic oil prices
and asked Congress for the windfall
profits tax last April 5, "We have faced
political attacks, political pressures,
and we have triumphed."
Carter urged Congress to pass the

remaining two parts of his energy
package - synthetic fuels legislation
and creation of an energy mobilization
board to cut government red tape for
priority energy programs.
THE PRESIDENT had been anxious
to sign the legislation since it was
passed last week. "You can leave the
ribbons off -this one in order to get it on
down here," he told Senate leaders last
Thursday after the measure passed on
a 66-31 vote.
The bill is a compromise version of
the $294 billion tax Carter recommen-
ded last April after deciding to phase
out federal price controls on U.S. crude

oil in an effort to spur domestic oil
production and reduce reliance on im-
ports.
Although often called a tax on "win-
dfall profits," it actually would not ap-
ply directly to profits but rather to price
increases above 1979 levels.
Decontrol would allow U.S. prices to
rise to world market levels and cost
consumers an estimated $1 trillion in
the 1980s. The tax, retroactive to March
1, will take $227.7 billion of that "win-
dfall" and, after other federal and state
taxes, will leave the oil industry $221
billion it would not have had under con-
tinued controls.

No hosi
From AP and UPI
President Carter studied "conflicting
signals" from Iran yesterday and
White House officials said they were
trying to determine just what the
Tehran government wants in return for
taking custody of the hostages.
One official said while Carter is
trying to be cooperative "there are ob-
viously limits to how far this president,
or any president, can go."
White House officials promised to be
"restrained" in efforts to free the 50
American hostages in Iran as long as
there appears to be progress in
negotiations.
"We intend to continue to be
restrained in our words and actionsd so
long as progress is made to resolve this
crisis and bring our people home," said.
White House press secretary Jody
Powell.
Meeting with reporters, Powell was
repeatedly questioned about whether
President Carter has set a deadline for
progress in the crisis before imposing
new economic sanctions as he has

tage
threatened.
"If I wanted to c
deadline, I would do
"I would urge you
deadline for us.
"Let's stay cool, ft
he said. "Let's se
moves. Obviously t
will do what they
they'll not and then
a conclusion."
Meanwhile, an I
takes a hard line to
50 American hostag
three times as man
as supporters of Pr
Bani-Sadr in initial 1
nounced yesterday i
The clergy-don
Republican Party v
the president's supj
dents 21 and sever
total of 13. The oth
filled in a second rot
ted in about a month
Ayatollah Ruhol
country's revoluti<

transfer set.
said the Parliament will decide the
ome out and set a hostages' fate. It is not expected to
it," Powell replied. meet until June.
all not to set a Bani-Sadr told a rally Tuesday that
the ruling Revolutionary Council had
or a while at least," agreed to take control of the hostages
ee how this thing from the militants holding them at the
hey (the Iranians) U.S. Embassy in Tehran if the U.S.
said they'll do or government promised to abstain from
we'll have to reach all hostile acts and propaganda against
Iran.
ranian group that Carter called that statement a
ward release of the "positive development" but refused to
;es has won nearly comment on the terms. And Bani-Sadr
y Parliament seats said he was not satisfied with the
esident Abolhassan American response.
balloting, it was an- The Revolutionary Council was ex-
n Tehran. pected to meet today to discuss the
minated Islamic possible hostage transfer.
von,49 of 101 seats, A spokesman for the militants denied
porters 18, indepen- reports that they had agreed to turn the
al minor parties a hostages over to the government. In a
er 169 seats will be telephone interview, the spokesman
and of voting expec- told the Associated Press: "We haven't
a. said anything about this subject yet,"
lah Khomeini, the but he said they might have a statement
onary leader, has today.

Ar roto
PRESIDENT CARTER signs the compromise $227.7 billion oil "windfall
profits" tax bill at the White House. Around Carter, Housing and Urban
Development Secretary Moon Landrieu, Treasury Secretary G. William
Miller, Rep. Al Ullman (D-Ore.), and Senator Robert Byrd (D-W.Va.)
applaud the signing of the long fought for legislation.
NYC train strikers
backto work; bus,
sbc ubwaytill shut down

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THEY( SAY TH E

Dress can make or
break job interview

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By DAVE PERRY
Before you even open your mouth in a
job interview, your yellow shirt could
be giving the interviewer the wrong
impression.
Pastel colors are considered calming,
but not very dynamic or powerful; ac-
cording to Tavi Fulkerson, who offers a
class on dressing for success at
Washtenaw Community College.
"How you first impress people is how
you dress," said Fulkerson recently at
a special dressing workshop. "Every
day you wear something, you present a
part of you," she added.
FULKERSON SAID her suggestions
are based on statistics, current fashion
trends, and other experts' advice on the
subject.
For men applying for an entry-level
executive position, Fulkerson said the

following hints may help the applicant
land the job:
" A three-piece suit, rather than a
sport jacket or leisure suit, should be
always worn with a tie;
* Dark blue-considered the most
powerful color-is always a safe bet;
" Other good color schemes are
brown-beige, black-gray, and navy-
gray;
" Beards are generally a bad idea for,
a "conservative" job interview, but
they may be acceptable, especially if
they are trimmed closely; and,
" Gentleman's Quarterly is a good
source for comparing how a suit should
fit
"HOW THE SUIT fits is most impor-
tant to me," Fulkerson said.
Some jobs may not require such strict
dressing requirements, however.
See LEISURE, Page 5

From AP and UPI
NEW YORK-Long Island Rail Road
(LIRR) strikers were ordered back to
work by their union in a surprise move
yesterday, but that only slightly eased
the pain of the separate bus and subway
shutdown that has swelled Manhattan's
population by at least 500,000 frustrated
commuters.
Meanwhile, a mediator said he hoped
to meet this morning with both sides in
the strike by 35,000 members of the
Transport Workers Union (TWU)
against the Metropolitan
Transportation Authority (MTA),
which operates city buses and subways.
The union and the MTA will not
necessarily negotiate or even meet
together, said mediator Walter
Gellhorn.
FORA SECOND day, New Yorkers
yesterday were walking, driving, car-
pooling, jogging, bicycling and using
chartered boats to get to work. Five
thousand pedestrians and 2,500 cyclists
crossed the Brooklyn Bridge-50 per
cent more than Tuesday.
"New Yorkers can endure anything,"
said Mayor Edward Koch. "New
Yorkers can do anything and they can
do it on one foot."
MTA Chairman Richard Ravitch said
he was ready to negotiate, but did not
believe bargaining would resume
before tomorrow.
THERE WAS no settlement in the
LIRR strike. The union said it ordered
picket lines pulled down at the request

of a federal mediator, who said he
would get negotiations under way
again.
The order did nothing to untangle
massive traffic snarls during the
evening rush hour, since commuter
service between New York and Long
Island suburbs was not due to resume
until midnight.
In a migration unparalleled in New
York history, about one-half million
people took up temporary residence in
Manhattan,finding lodgings in hotels or
'New Yorkers can endure
anything. New Yorkers
can do anything and they
can do it on one foot.'
-New York Mayor
Edward Koch
with relatives or friends, according to
an estimate by the city's deputy
director of operations, Gene Connell.
POLICE COMMISSIONER Robert
McGuire said vehicular accidents
increased 43 per cent on the first day of
the strike Tuesday.
Traffice into midtwon Manhattan
nit a peak of 200,000 cars during
See NYC, Page 6

*I

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given a pamphlet about blood pressure and an explanation
of the screening results. "People keep saying we should do
this agairn during finals week and see what the difference
is," commented nursing student Janet Dean. n

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police officer peers up toward the Canterbury Loft, where
machine gun-wielding persons had reportedly entered only
moments before. The "guns" turned out to be just props,
but police didn't know that when they stormed the
establishment. "Students were bringing theatre props from
the Residential College across the campus in a shopping
bag, and apparently someone called the police. . . Shortly
after the students got here, the police arrived," said the
Rev. Andrew Foster of the Loft. He said the wooden
machine guns are to be used in a Good Friday worship

considerable attention anyway. Barber George Birko was
inside, wearing nothing above the waist save a tie. Birko
was soon visited by the police, who claimed his sign was
causing a traffic jam. Then an official of the Ohio Barber
Licensing Board showed up to investigate. "All he found
was me, without my shirt on ... He said that wasn't a
violation," Birko said. Birko added that his April Fool's
joke did have some unanticipated benefits. "My business
was more than double for a usual Tuesday, and I guess
that's alright," Birko concluded.

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